Solar Energy Policy - Indiana

Solar Energy Policy - Indiana

In 2017, the state of Indiana changed their solar energy policy for the Investor-Owned Utilities in the state, IP&L, Indiana-Michigan, NIPSCO, and SIG&E.  The current policy limits the size of the system you can install to 1 MW (1,000 kW) or large enough to meet your annual electric needs, whichever is smaller.  Under the new law, if a customer produces more solar energy than they use during the month, they will receive a credit for the excess generation sent back to the electric grid at a rate of the utility’s wholesale price (what the utility pays to buy or produce the electricity) multiplied by 1.25.  This is typically 5-8 cents lower than the retail price of electricity.

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For net metering customers who installed their system before December 31st, 2017 will receive retail rate for their excess generation until 2047.  There is an incentive for people considering installing solar to do so in the next few years.  If the system is installed before July 1, 2022, the customer will receive retail rate for their excess generation until 2032.  After 2032 or 2047, the rate will change to the wholesale rate x 1.25.

For the rural electric cooperatives in Indiana, they are not bound by the new solar energy policy.  The rate they pay for excess generation is the wholesale rate. Some have a size limit of 10 kW, but a few have a 25-kW limit. 

 For a better understanding of your electric utility and how solar can save you money, please contact us today. 

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